The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank are today announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system. The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity.

And finally, a promise to bailout Bank of America when it hits $4.00 again:

U.S. financial institutions currently do not face difficulty obtaining liquidity in short-term funding markets. However, were conditions to deteriorate, the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed to support financial stability and to promote the extension of credit to U.S. households and businesses.

This means that the global situation is far, far more dire than the talking heads have said. Luckily, when this step fails, which it will, Mars can always come and bail us out.

The rationale for this action demonstrates Einstein’s definition of insanity very nicely:

The possibility that one or more European governments might default on their debts have raised fears of a shock to the global financial system that would lead to severe losses for banks, recession in the United States and Europe and another global credit crunch.

Bailout actions taken on a regional basis have only perpetuated the financial meltdown and harmed the economy, so let’s “fix” the problem by doing the same thing except on a global basis? That sounds about right.

In a very related story, you can probably kiss the euro goodbye. If they keep this up much longer you can kiss the dollar goodbye.

"thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity."

Like any Global Citizen wants to borrow 'more' on credit in THIS employment environment!? Nice try guys. So glad you're thinking of 'us'.

clu seatoe on
November 30th, 2011 1:35 pm

“…the Federal Reserve has a range of tools available to provide an effective liquidity backstop for such institutions and is prepared to use these tools as needed…”

Tools:

Prescription pads for executive orders;
Printing presses;
Pallets of paper;
Vats of ink;
Government paid (union) workers;
The will of the people be damned.
SHOW ME THE MONEY!

Hyperfobea on
November 30th, 2011 1:46 pm

Here it comes … but for the love of America, keep repeating the quote below until the average American dummy wakes up … (by the way, thanks average American dummy for old & dead and new & reincarnated for getting us into this)

"I believe that banking institutions are more dangerous to our liberties than standing armies … If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] … will deprive the people of all property until their children wake up homeless on the continent their fathers conquered." -Thomas Jefferson

(The only thing federal about the Federal Reserve is the name.)

Marshall_Will on
November 30th, 2011 2:11 pm

Clu,

But what will they run out of first? Ink, or paper?

Pasadena Phil on
November 30th, 2011 2:13 pm

Global government has arrived. This is like requiring all luxury liners to be redesigned so that if there is a leak anywhere in the ship it will spill over to all compartments. In an age that has deified "diversity", we are creating a one-world system whereby if anything goes wrong, the entire world gets sick and dies. No more small problems. Every problem will hold the world hostage through linkage.

Brilliant. And we keep voting for it. But now we will be more like the EU and China where, sure, people vote. But…….

Marshall_Will on
November 30th, 2011 2:16 pm

Ah… the Housing Bubble Blogger's Mantra!

My good friend invented the phrase "Debt = Wealth". Meaning the more you 'borrow' the wealthier you can become! We said it was a stupid premise in 2004 for -consumers- !

Little did we know it would spread to governments? I know this looks daunting right now guys but it really boils down to that 'Recall' effort in WI. Sure, it's playing out everywhere but if we can pull the plug on unsustainable bennies for Public Employees and entitlement programs we needn't fire up the presses.

Derail at the source.

Hyperfobea on
November 30th, 2011 2:32 pm

Yeah, right if I take your meaning like picking hard enough at the scabs will eventually uncover the cancer?

Pasadena Phil on
November 30th, 2011 2:33 pm

And let's not forget that these financial geniuses have sold us on the notion that unrecoverable debt is actually an asset that banks can carry on their books at whatever price they want. Those are the famous"toxic assets" that no longer are subject to being "marked to market". Were those "assets" priced to reality, the entire global banking system would be de facto insolvent. The math just doesn't work.

It's not capitalism that doesn't work, it's people. The corruption is so pervasive and entrenched that I can't see how we avoid millions of people getting killed when the global wealth redistribution kicks in for real.

In the end, that debt is real. It is owed to somebody. There just aren't enough assets and economic cash flow to balance the books. That is why we have wars. There is going to be a reset and someone is going to take the hit. It doesn't have to be us. These globalists believe that can anesthetize us and we will all meekly go to the slaughterhouse like sheep.

This isn't going to end well.

Hyperfobea on
November 30th, 2011 2:36 pm

"And we keep voting for it."

Hey hey hey there … slow down, PP! Just who the heck is "we"? I am not voting for this crap, and I don't think that by voting against both elephants and jackasses I'm responsible for this mess. I'm just a victim unfortunately along for the ride because I'm not quite ready to live in a cave or mud hut.

Pasadena Phil on
November 30th, 2011 2:39 pm

Nothing personal. My comments weren't directed at anyone specifically. I'm more aggressive than usual these days because it seems to me that we "conservatives" are getting beat up at all of the so-called "conservative" blogs these days. The professional Republican commenters have taken over these threads. We really need to step up our game here.

Granny55 on
November 30th, 2011 2:43 pm

What I am opposed to is that a bailout of US $$$ to the Europeans is those bastards over there only work 6 hour days (if they work at all), they get generous socialist handouts for everything imaginable and retire at 50 and we here in the US are going to have to work until we are 80 to pay for it all. And we have a bunch of progressive pukes here that want the same Euro-trash life style including appeasing every illegal immigrant want and need. Like we don't have enough slackers and moochers of our own. Makes me sick!

Marshall_Will on
November 30th, 2011 2:59 pm

Hyper,

Lol, yeah, and now for the bad 'news'..? I'm not implying cutting PEU's off at the knees, or even a sustainable dull roar will in any way bring things back to 'normal'. If only!

It will however perform the function of a basic triage and stop the bleeding long enough to sort this out. I realize it's become popular to say this is all part of a broader 'plan' to deprive Americans of their homes etc.

But think about it, without proper care and constant maint., a house goes to HELL in no time out at all! Was the 'plan' to put us all out in the street and have all these *abandoned* homes? To what 'end'? Eventually you'd have to SELL them. To 'whom'?

Broken, foraging bands of thugs? These lenders NEVER wanted this to happen. When it all fell apart they were as scared as you or me.

Marshall_Will on
November 30th, 2011 3:06 pm

Ah… "Mark-to-Myth"!

The Debt is a big part of the problem, but as you somewhat imply, look at Robert Rubin's tenure at Citi. He "booked" $300 to $400 mil. in compensation for dreaming up ( or signing off ) on bogus financial products that turned out to be Bouncing Betty's!

Where'd all that 'equity' go? HF mgr's 'profits'? Their's was the Art of turning fictitious 'profits' into real ( for the moment ) $'s. As long as that loophole remains open, we'll find ourselves RIGHT back here.

Bringing things back to normal will entail a return (about face type) and then strict adherence to the, ahem, law of the land (that be the Constitution, I think). No more *penumbras* and no more usurpation of states' rights. Gotta undo what was done in the 20th century. Yup, many people will be out of work, but do we want more than half the working population employed by Uncle Sam?

Of course any such change will only come as the result (maybe) of an armed revolt. Maybe another civil war?

Most (heck, if not all) of the politicians in congress are criminals anyway and if not that than whores (the most colorful of the lot are both, e.g., Frank 'n Beans).

Herodotus states (I, 94) that the Lydians 'were the first to coin in gold and silver'. Aristotle states that the first coins were struck by Demodike of Kyme, of Ancient Greece, who had married Midas, king of Pessinus, and had by him a son named Agamemnon.

The Franc Poincaré is a unit of account that was used in the international regulation of liability. It is defined as 65.5 milligrams of gold of millesimal fineness .900. Formerly it was identical to the French franc, although it has not been so since the 1920s.

The second is that she appears to dislike small animals, in which she angrily asks who left the animal in front of where she's walking before kicking it away, no matter how cute it is. A Kuja responsibly apologizes, while the offended animal snarls at her, and Hancock advises her to be more careful in the future.

Most hedge fund investment strategies aim to achieve a positive return on investment whether markets are rising or falling. Hedge fund managers typically invest their own money in the fund they manage, which serves to align their interests with investors in the fund.

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